Our lettings services
GUIDANCE NOTES FOR A LANDLORD
As a potential landlord there are various issues to be considered in the letting of your property, ranging from legal requirements to the management of the property during the tenancy.
Outlined below are some of those points that should be considered and the staff at Berrys will be pleased to discuss these further with you.
- The Tenancy Agreement
Berrys has developed a standard tenancy agreement, in conjunction with
our solicitors, which we shall use unless instructed otherwise. The type
of tenancy will depend primarily upon the landlord’s requirements in letting
the property, and the type of tenant.
The main tenancies are outlined below and Berrys will advise
you on the type of tenancy required.
| Housing Act 1988 Tenancy |
Non-Housing Act 1988 Tenancy |
|---|---|
| Assured | Company Let |
| Assured Shorthold | Non principle residence |
| Resident Landlord | |
| Holiday Let | |
| Other Tenancies | |
General Taxation
It is advised that before letting your property you discuss with your accountant any taxation implications.
Taxation for Non-Residents
Under the Finance Act 1995, agents collecting rent for non-resident landlords must deduct tax at the base rate (less allowable deductions made by the agent), and on a quarterly basis account for and pay to the Inland Revenue money retained.
The Inland Revenue can grant exemption from this requirement, which would authorise the agent to pay rent direct to the Landlord without any deduction of tax.
Further advice should be taken from your accountant if this is relevant to you.
Health and Safety
There are now various regulations imposed on the landlord, and agents, of rented properties to ensure the safety and well being the tenants. Berrys will advise you on any legal requirements to ensure that there is no breach of the regulations.
Gas Safety (Installations and Use) Regulations 1998
Under these regulations a statutory duty is placed on the landlord and agent to ensure that all gas appliances, pipework and flues are maintained in a safe condition. It is a statutory requirement that the installations are tested by a CORGI registered engineer prior to a tenants occupations, and each year thereafter. The tenant should be provided with a copy the engineer’s inspection certificate at the commencement of the tenancy and within 28 days of the annual inspection.
The Electrical Equipment (Safety) Regulations 1994
When electrical equipment is supplied in a property these regulations apply a duty of care to ensure that the equipment is safe and will not cause danger, and that the equipment satisfies the safety requirements of the 1994 regulations. It is recommended that you have appliances checked by a qualified electrical engineer prior to letting and annually thereafter.
The Plugs and Sockets (Safety) Regulations 1994
These regulations were introduced due to the fire risk that result from faulty electrical appliances, often caused by plugs incorrectly wired or incorrectly fused.
The regulations relate to any plugs, sockets, adapters or fuses intended for domestic use, with a working voltage of not less than 200 volts, and also the supply of any appliance which has a plug fitted.
The Furnishing and Furniture (Fire Safety) Regulations 1988
These regulations state that all “upholstered” furniture contained in a rented property must comply with the Regulations, and not to do so will result in a criminal offence.
The regulations state that upholstered furniture must be fire resistant and should meet the “cigarette and match test”. Any furniture manufactured before 1950 is excluded, which covers period and antique furniture.
Smoke Detection Act 1991
As from June 1992 all newly built homes, or conversions, must be fitted with mains operated smoke detectors on each floor of the building. Although there are no current statutory regulations relating to the provision of smoke detectors in older buildings, it is advised by the Fire and Safety Officers Association that current BS standard battery operated devices are fitted to stairways and halls on each floor.
Tenancy Deposit Scheme
In 2007 new regulations will come into force on the handling of tenants deposits and the adjudication of disputes. Further information can be supplied by members of Berrys letting team.
Furnished or Unfurnished
Whether a property is let furnished or unfurnished will depend on the landlord’s individual circumstances. If you are thinking of letting for only a short period it may be convenient to leave the property furnished although this is a personal decision.
When considering letting a furnished property it must be done in conjunction with the legal requirements mentioned above.
Property Insurance
You should inform your insurers that the property is to be let and that any cover, including building insurance, remains in force. If the property is let furnished this will require contents insurance to be in place.
Liability Insurance
It is recommended that you hold appropriate liability insurance should the tenant suffer any injury while at the property and lodge a claim against you. It is usual for household insurance policies to automatically cover against any possible liability, but this should be checked with your insurance company.
Rental Insurance
There are circumstances beyond the control of Berrys when the tenant may fall behind with rental payments or be unable to pay due, for example, to redundancy or illness.
It is recommended that the landlord should take out appropriate insurance to cover these circumstances.
Record of Condition and Inventories
It is good practice to produce a record of condition and inventory of the property before the tenant moves in, and is a service that is provided by Berrys. This document can then be attached as part of the tenancy agreement and is used to check the condition of the property at the end of the tenancy.
Legal and Accounting Services
Berrys can assist you in finding suitable legal or accounting advice should it be required.
Property Management
Before a property has been let it must be considered who will deal with the matter of property management and dealings with the tenant. Berrys provide a full management service when we will organise repairs and maintenance of the property and liase between the landlord, tenant and contractors.
We will ensure that matters are dealt with as quickly as possible, with the minimum amount of trouble to the landlord and tenant.
Mortgage and Joint Ownership Consent
If there is a mortgage on the property you are to let, then written consent must be obtained from the mortgagee, and it is recommended that this be done at an early stage of the letting process. If the property is jointly owned, then written consent is required by the joint owner(s) prior to letting.
Berrys recommends that you establish with the post office a redirecting order for your mail, as landlords should not rely on tenants to forward mail.
Garden
The garden should be in good order at the commencement of the tenancy and it may be appropriate to leave a lawn mower or tools necessary for maintaining the garden. If the garden is particularly large, you may want to consider providing a contractor to continue the maintenance.
Please contact David Surtees-Dawson at Berrys Kettering for more information.
